Reality.... Buying your first home can be intense, but still can be FUN with the right people. There are many professionals out there that are willing and able to help you with this process. But the more that you understand this process, the easier and more comforting this experience will be remembered with pleasant memories.
You first need to align yourself with a good loan officer and real estate agent so as not to get led down the wrong path. I am not here to SCARE YOU, but I am not here to paint a pretty picture and just tell you to trust anyone that says "I promise" or "don't worry". These are commonly used terms in the mortgage and real estate industry. Randy Prothero talks about more amateur Real Estate Experts than ever before.
In this
4 part series, I am going to give you advice, my opinions, and my expertise as a loan officer with over
14 years of experience just in the
mortgage industry.
One piece of advice is that this can sometimes take time. It's not like shopping for clothes, furniture, or even picking out a car for that matter of fact. Sure, I could get you approved for a mortgage in 1 week. You shouldn't be waiting last minute to do that though. My concern is don't buy a house just because you need to be out by a certain date. And DON'T wait with 2 months left before your rent lease is up. I am starting to see this as a problem as of lately. Just because there are a lot of homes on the market, doesn't mean that you have a better chance of finding your dream home. Talk to a realtor that knows the area well. Don't forget, there are other buyers out there also, looking for the same. Meaning..... more people will bid on the better homes out there, with multiple offers. That is why getting not only pre-qualified for a mortgage is important, but possibly Pre-Approved (knowing the difference).
On a more serious note, especially now, rates can move on you at any given time as quickly as a hot air balloon can go up. Robert Ashby points this out in regards to rising rates and why. Sure, the lender that you choose should keep an eye on this for you. But yesterday is a perfect example of what can happen in a split second and not every loan officer believe it or not watches the market. Bloomberg.com can be a very good place to get market reports and updates.
Watching the market is especially important if you already have contracts on a home. I locked in a few of my clients last week because I do keep an eye on the bond market daily. But if you are still shopping for a home, that lender won't be able to lock you into a rate until you actually find a home. You want a trusted loan officer that is on top of this and giving you updates and not waiting until the last minute. And keep in mind when shopping for a mortgage, don't always focus on Rate. Payment is just as crucial.
Lastly, even if you are just starting out, start saving a little here and a little there. Sure, there are so many mortgage financing options out there with even 100% financing programs. But each program is different. Word of advice, speak to someone qualified and not just fatherly advise even though he may mean well. Or those that just bought a home, your neighbors, or even co-workers. As mentioned above, rates and programs can change daily.
And when speaking to a loan officer, if they are quick to pre-qualify you, this could be a red flag. Please read Purchase Price vs Payment. What's missing?
This might be a little long, but an excellent read. Vickie Kessinger talks about 99 Questions & Answers About Buying A Home.
Conclusion : In Part 2, I'll talk about more specifics when it comes to getting pre-qualified and pre-approved. What to look for, how to find those professionals, and how to be better prepared.
Please click all links because each link is related to this topic and will share more secrets and give you a much better outlook in regards to purchasing your new dream home.
The First Time Homebuyer Series :
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Jeff - This is a must read for first time buyers. So much information and great links. Thanks for all the research and effort you put into this!